FGB earnings jump 11% in Q4

FGB Group reported a strong rise in 2015 fourth quarter earnings, which grew 11 per cent to Dh1.55 billion.
The income growth was more stronger at 21 per cent when compared quarter-on-quarter. It was up six per cent up to Dh6.01 billion in the full year, the lender said in a regulatory filing.
It was the 16th consecutive year of consistent growth in profitability for the Abu Dhabi lender.
Total assets growth was flat at Dh227.5 billion; loans and advances were up seven per cent to Dh149.8 billion; and customer deposits slightly grew one per cent to Dh142.5 billion in the year.
Net interest and Islamic financing income climbed two per cent in the quarter ended December 31, 2015. However, it fell slightly by one per cent to Dh6.429 billion in the full year.
Fees and commission were down six per cent in the fourth quarter; however, they were up four per cent in full year. The operating income was up five per cent to Dh9.43 billion while non-interest revenues contributed 32 per cent, the lender said in a statement. 
"In spite of complex and volatile operating conditions, FGB was able to deliver a solid set of results in 2015, demonstrating our unique ability to show resilience by quickly adapting to new market trends," Abdulhamid Saeed, FGB's managing director said.
André Sayegh, chief executive officer of FGB, said his bank delivered 'a robust set of results'.
"This achievement reconfirms the solid foundation of our business model, the strength of our franchise and the relevance of our strategy centered on dynamism, specialisation, synergy, speed and diversification," he said. There were 186 per cent more allocations for provision and impairments charges to Dh507 million for the period. However, year-on-year increase was six per cent to Dh1.454 billion.
In terms of revenue diversification, the CEO said the bank grew the contribution of "non-interest income sources to 32 per cent of total revenues, up from 28 per cent in 2014, which is aligned with our strategy to broaden and deepen the relationship with our customers complementing our lending activity."
Turning challenges into opportunities is one of his key goals, and FBG's achievements in 2015 reflect relentless commitment to drive operational excellence by strengthening competitive advantages as per business plan.
"Although global economic conditions appear to be challenging in 2016, it is a market reality that the UAE has always overcome downturns, and reemerged with a stronger momentum," Sayegh said.
"We are looking ahead with confidence as we will continue to deliver on our long term strategy in a disciplined manner and prudently manage risks to continue maximising returns for all our stakeholders," the managing director said. FGB's board of directors recommended the distribution of a cash dividend Dh1 per share for the financial year.
- haseeb@khaleejtimes.com